6 Tips to Buy a House in a Seller's Market

6 Tips to Buy a house in a Seller’s Market
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Buying a house in a Seller’s Market can be very challenging and overwhelming because Buyers must compete with each other and often find themselves in bidding wars, and the houses get under contract in record time.
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In this video I explain how it is still possible to buy the house that you like during a seller’s market.
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Hi, I’m Lilly Cichon with BDJ Real Estate, brokered by eXp Realty, the nation’s top independent brokerage.
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In a seller’s market sellers have the advantage when it’s time to negotiate and it is common to see multiple offers, leading to bidding wars which often result in houses selling for over the asking price.
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(Below is a link to my video What is a Seller's Market?)
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Some buyers may get discouraged from chasing house after house during the Seller’s Market bidding wars. Therefore, if you are buying a house in a Seller’s Market, it is very important to be prepared. Here are
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6 TIPS TO BUY A HOUSE IN A SELLER’S MARKET:
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# 1: Get pre-approved for a loan.
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The first step is to get pre-approved by your lender, before you start home shopping.
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Being pre-approved will give you the advantage over other buyers since you’ll be ready to make an offer and the Sellers will know that you are a serious and motivated buyer and they will not be wasting their time entertaining your offer.
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Besides that, the pre-approval letter will specify how much house you can afford so the sellers will know you that are ready, willing and able to buy their house.
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# 2: Get a great Realtor.
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Having a great realtor by your side throughout the homebuying process is essential to help make everything go more smoothly. Your realtor will help you find the house that meets your criteria, even before they’re found on popular internet sites, and will assist you in making the right offer when the time comes as well as negotiating on your behalf.
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# 3: If possible, make a CASH offer.
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Cash offers are more appealing to sellers since there is no financing contingency when you don’t have to use a lender and cash offers can also close more quickly than a financed sale.
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# 4: Offer above the asking price.
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Offering even slightly above the asking price will most likely get the seller’s attention and will give you advantage over other buyers. Of course, you will need to make sure that the house is worth what you are offering, and your realtor will be able to help you with this. Also, with an offer above the list price you may be able to get more in the way of a seller contribution in the contract.
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Remember that the house must appraise for your lender to approve the loan. Therefore, if the house does not appraise you will be able to negotiate with the seller to adjust the price.
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# 5: Offer an increased amount in Earnest Money.
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The earnest money is the initial amount you submit with your offer to show the seller that you are a serious buyer and it is normally required within a few days after the offer is accepted. In Georgia, 1% of the purchase price is a reasonable amount so you may want to offer more than that if you are making an offer during a seller’s market.
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Earnest money is not a down payment but, some or all of it can be applied as a down payment at closing.
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# 6: Waive some contingencies and be willing to make concessions during the negotiations.
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Such contingencies can be the number of due diligence days and closing in a short period of time. There are some things you may not want to wave such as some findings in the home inspection. Think about what is really necessary in order for you to buy the house and limit your requirements for repairs from the seller to ensure a smoother transaction.
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Following some, or all, these tips may help you stand out from the competition so you can buy the house that you like even during a tough market.
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Let me know in the comments if there is a particular topic you would like me to talk about in my future videos. Don’t forget to like this video, share it and subscribe to my channel. Thanks for watching. See you soon!
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